The dollar hit a 2 1/2-month low against the euro on Thursday and hovered near its weakest level versus the yen since 1995 as investors dumped the U.S. currency in further fallout from the dramatic rate cut by the Federal Reserve this week.
"The dollar ... is vulnerable because of what they're doing in terms of policy and the potential for quantitative easing in the U.S.," says Robert Minikin, senior currency strategist at Standard Chartered in London.
"The dollar remains very much under selling pressure, and we believe that will continue in coming days."
Well if the dollar is heading lower, is that such a bad thing?
According to Harvard economist Martin Feldstein it might not be so bad at all. He says, "I like to think the dollar becomes more competitive. A more competitive dollar is a good thing for the U.S. economy.”
He goes on the say, “It not only helps manufacturing, but by raising the price of imported manufactured goods, it causes American consumers to say, well maybe I don't need that product, maybe I ought to spend some more money on services here in the U.S.”
What’s the trade?
“Coke , McDonalds, Deere and Caterpillar are often the weak dollar plays you hear about,” explains Jon Najarian.
